How About a No-Poach Agreement with Government on Private Decisions

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Here’s another example of people who have a certain philosophy seeing government as a sort of universal corporate board or universal labor union:

Massachusetts Attorney General Maura Healey is leading a coalition of Democratic state attorneys general seeking information about “no-poach” agreements meant to block employees from leaving one fast food franchise to work for another franchise in the same chain.

Healey says Monday the agreements limit the ability of low-wage workers to seek promotions and earn a better living.

The attorneys general say 80 percent of fast food franchisors have no-poach agreements.

Franchises make agreements with their lead corporations for a host of reasons, from marketing to supply purchases to business operations.  They’re simply a step removed from a more-straightforward corporate structure, in which the executives would be able to set policy for when and how employees can transfer from branch to branch.

The key point — that which makes this not a matter of corporate giants versus the little-guy employees — is that these are all ways of making decisions and balancing interests.  The big-government view breaks everything into power, rather than relationships of shared interest, and posits elected officials and bureaucrats as overseers balancing interests.

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A shared-interest perspective reveals this to be oversimplified to the point of falsehood.  Good employees are valuable to corporations, which won’t impose burdensome restrictions on them.  A great register operator who wants to move up into management can always move out… to a similar company, so the chain doesn’t have incentive to shackle him or her to the front counter rather than share within the brand.

But that interest has to be balanced against other considerations, like the trust of franchisees that the corporation won’t set them up to fail in competition with each other for customers and employees.  Government isn’t in a position to (or very good at) making these decisions for people, and should stay out of them in the absence of truly egregious abuses.



  • Merle The Monster

    “Here’s another example of people who have a certain philosophy seeing government as a sort of universal corporate board or universal labor union“

    Those people are elected attorney generals who are investigating the illegal practice of employers colluding to limit the ability of their employees to compete for promotions and higher wages. No
    poaching agreements violate federal anti trust law and harms workers

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